Releasing an IT product in a competitive market is easier said than done, especially if you’re a new business on the block. That’s precisely because most newbie organizations look at the launch as the end goal. In reality, it’s only the beginning. Imagine updating the API integrations for your new product. Things can be pretty challenging!
But one might as well ask, why should I be worried about post-launch tech needs? Isn’t that the IT team’s job in the first place? Yes! You’re right! But the big question is, do you have a capable IT team to handle such needs? That’s where outsourced IT services come in.
According to industry reports, the CAGR for IT services stands at 10.36% by 2027. Also, by 2029, the global IT outsourcing business is expected to churn a revenue of $812.70 billion. A massive annual growth of 8.48%!
Contrary to what many would like to believe, outsourcing IT support is more than just saving money. By all means, it’s a strategic maneuver to build a resilient and profitable business model. In this article, we will tell you all about outsourcing IT services, the benefits of outsourcing IT support, and how to select the best IT outsourcing partner. Keep scrolling!
What Is IT Outsourcing For Businesses?
IT outsourcing is a strategic move to use the services of an external company for a wide range of infrastructure solutions, tech needs, and applications services. Primarily, businesses choose to outsource IT services to reduce expenses and track time-to-market for their IT products.
So, how does IT outsourcing work? Let’s understand the concept with an example.
Say there’s an unknown problem with a computer or any other technology coming from your company. As a standard practice, you hire a third-party service provider to fix it. While you can always pick an IT firm of your choice, you still can’t have the top engineer to come and work for you exclusively. Whenever you encounter an issue, you need to call their office for assistance.
With IT outsourcing, you can dramatically reduce the dependency on non-core tech staff. In many complex IT outsourcing cases, multiple contractors can be smartly replaced by one single contractor firm. With companies struggling to find the right talent for an in-house team, IT outsourcing has become a norm. IT support companies play a crucial role in this process, providing businesses with reliable and scalable solutions to meet their technology needs.
What Are Different Types of IT Outsourcing?
Broadly classified, there are three major types of IT outsourcing, namely Strategic, Functional, and Resource. Here’s an understanding of each type.
- Strategic outsourcing: The most complex IT outsourcing type that involves end-to-end transferring of a company’s IT services to an external service provider.
- Functional outsourcing: In this type of IT outsourcing, the outsourcer takes charge of all functions that the customer transfers. The emergency rate of response and participation in non-standard issues are all stipulated forms and are included in a special agreement.
- Resource outsourcing: Here, the company-customer duo enlists an outsourcer company to select qualified personnel. This is done using external resources, where the service provider offers all necessary resources and, if need be, replaces them at once.
10 Significant Benefits of IT Outsourcing
For every competitive business, availing outsourced IT support holds great potential to realize long-term objectives. For several medium-scale companies and even large enterprises, IT outsourcing has helped tackle internal issues related to operability and efficiency.
Increased Focus on Core Business Areas
IT outsourcing helps free up your resources so that company heads can have more freedom across existing production lines, logistics, schemes, marketing, trading, manufacturing, and more.
Working With Preferred Service Level
IT outsourcing is often done on a tiered basis- quarterly, monthly, or annually. Some companies also prefer IT outsourcing on an “on call” basis, like in case of an emergency. This saves a good amount of money as you pay for only those services that your company uses over a certain period.
Mitigating Downtime
IT outsourcing helps companies with unique monitoring to identify and fix issues before they can cause a problem. This, in turn, reduces downtime, keeps you aligned with your profit goals and saves company goodwill.
Improved Economic Efficiency
IT Outsourcing is a great way to improve all business subsystems that impact revenue generation. As the time spent on core business activities intensifies, it automatically translates to increased production time across key business units.
Getting the Most Out of Internal Resources
Outsourcing your IT needs means more time for your in-house resources to shift their focus to significant organizational needs. Your clients enjoy the benefits of a cost-effective information base. At the same time, you get quality work done by the industry’s best professionals.
Reduced Hiring and Training Expenses
Hiring and training employees in-house consistently exceeds the cost of outsourcing. The time spent looking for the right talent is way too much, adding to the expenses. Not to forget, the right talent comes at the right price, which can exceed your budget. In comparison, IT outsourcing is always a viable option.
Keeping Up With Compliance Requirements
Staying up to date with industry regulations is always a stress for businesses. With new laws and rules being introduced, it demands efficient monitoring. Outsourcing your IT needs helps ensure compliance and mitigates any risks arising out of it.
Speedy and Scalable Resources
More than a cost-saving option, IT outsourcing is about flexibility. As a company, outsourced IT services give you access to the right resources to streamline existing processes. Whether you want to scale up or down, it promises unmatched adaptability by promptly responding to changing demands. This is something that traditional hiring can seldom claim to offer.
Unmatched Innovation
IT outsourcing has innovation at the center. As businesses choose to partner with other firms, the latter brings a fresh perspective to the table and cutting-edge approaches to bend the curve. In turn, it dramatically improves your existing products and services and sets you on a path for innovation.
Consistent Results To Dominate The Market
Unmatched expertise and commitment to excellence has made IT outsourcing deliver consistent results for forward-thinking companies. Proficiency across latest tech and innovation has made several businesses reap the best results like never before.
Time To Say Yes To IT Outsourcing For Growth And Success
As a powerful business strategy, IT outsourcing can do wonders for your business, saving money, driving efficiency, and fostering innovation. However, it has a lot to do with the outsourcing partner you choose. Above all, your IT outsourcing partner should realize the pain points of your client to offer maximum leverage. That way, you can gain maximum leverage and resilience to stay ahead in the market.
